Recent sale price of a house in our street......

moneysavermummy2014

Sorry everyone, I am getting myself in a twist but could just use some advice.

We are getting ready to sell our property. We have been extraordinarily lucky in our area; we bought a wreck of a house 6 years ago, renovated and extended which added a good chunk of value, but mostly, thanks to living 100yds from what is now the best primary school in the city/county (something that happened in the time we have lived here) prices have rocketed in the general postcode. However, no houses sold in our street (solely due to no one leaving!) for the past 4 years so the 'sales' figures you find when doing research are in stark contrast to what properties are marketed at today; literally, less than half the price.......

Anyway, that wasn't much of a concern as the market is the market, but at the beginning of the year, our neighbours across the street moved out. They were quite old, and a little bit vulnerable in many ways; always pretty 'green' shall we say, and although hearts of gold, not the sharpest tools in the box, and we understood that even though their property needed a lot of work in terms of updating, they were going to sell it to a family member (we couldn't quite work out how/who this person was 'related' but either way, it seemed to have been all worked out in the past).

In just doing the ongoing research before we put the house up for sale, the 'sale' price for their property has literally this weekend appeared in the 'sold prices' sections of all standard house buying websites..... and I am STUNNED to see they sold it for approximately 50% of it's value! I should add this wouldn't have been understood by them, from the way they were talking, they felt they were getting a GREAT deal with the sale price!! It's not been a case of 'doing family a favour' etc.....The property is currently being renovated and the chap has already told us he is going to be putting it on the market later this year at over double that number so I a) first of all feel sorry for the couple as they have been right royally shafted, b) feel this idiot has taken awful advantage of a fairly vulnerable old couple but, most of all, and most selfishly I confess, c) am now worried about how this may (or may not) affect the perceived value of our house when we come to sell??

Is it justifiable to explain (if the question comes up) that this was the result of an inter-family purchase as no doubt potential buyers will be doing their research too and see this appear.....

Any thoughts? I'm sure it's not a massively uncommon occurence, but either way, I am worried it may be a damaging one? x

nearlyrich

The house opposite us has just sold for a not a lot of money we are not too concerned as we are not selling but the people next door and across the road the other way are both trying to sell and have theirs up for a lot more money. The sold house was an estate sale and needs some work but the relatives took a hit for a quick sale as they live away and it was more convenient to sell it quickly.

DTDfanBoy

Are you sure about your figures, I don't know of anywhere in the country where values have doubled over the last four years, even London has only managed a little over 40% in that timeframe.

moneysavermummy2014

Yep, positive about our figures Sales prices on the streets either side of us (all the streets are of same traditional Georgian build) for the past 12 months are circa £450k. Sales appraisals (taken with pinch of salt of course!) have advised listing at £480k (we feel way too high) The house behind us, with one less bedroom, one less reception, one less bathroom is currently on at £425k and just went under offer circa £420k..... But the house that has been sold to family as per my post above sold for £210k..... like I said, they were mugged!

Thrugelmir

moneysavermummy2014 wrote: »

But the house that has been sold to family as per my post above sold for £210k..... like I said, they were mugged!

You'll never know the reasons why.

rosie383

DTDfanBoy wrote: »

Are you sure about your figures, I don't know of anywhere in the country where values have doubled over the last four years, even London has only managed a little over 40% in that timeframe.

In Luton where we are, prices have risen considerably but most of that is over the past year. As an example, the street that we are buying in, a 3 bed semi with small extension in good condition sold in 2010 for £134k. Now the same houses in that street are coming on the market at £260k. So it is possible.

RichardTheComic

The increases in value you talk about are really high. I'd agree with the PP to check the figures thoroughly again. Sometimes, even if houses look identical, it can be surprising how the figures vary from street to street. If it is right, then I wouldn't worry too much about the house that sold below market value.

moneyistooshorttomention

In your position, I would wait until the "mugger" who underpaid for that neighbours house came to sell it on. You say he will be doing so later this year. Its frustrating to have to wait because a "mugger" has been on the scene so nearby - but, once people can see what this house has been sold on for by the "mugger" then it will be clear what yours is worth in comparison to that.

Muggers sometimes don't wait long. I was astonished at how low a price a house in my home area has just gone "sold STC" for - but even more astonished by the £30,000 or so lower price the mugger who bought that house had paid for it. I don't know the circumstances on which it had the first house sale - but there it is sold all over again onto someone else only a few months later (and not a scrap of work has been done on it in the meantime either).

So you may even find your neighbourhood "mugger" cant even be bothered to do any work (or at least not much) on the house they have just underpaid for and will whack it straight back onto the market very quickly to cash in their ill-gotten gains as fast as they can.